• New HUD Secretary Faces Daunting Housing Crisis and Homelessness Challenges

  • Feb 9 2025
  • Length: 4 mins
  • Podcast

New HUD Secretary Faces Daunting Housing Crisis and Homelessness Challenges

  • Summary

  • On February 5, 2025, the U.S. Senate confirmed Scott Turner as the new Secretary of the Department of Housing and Urban Development (HUD) with a vote of 55-44. This confirmation comes at a critical time, as the country grapples with a severe housing crisis, rising homelessness, and various challenges in the housing market.

    Secretary Turner, previously the White House Opportunity Zone czar during the first Trump administration, brings a background in coordinating federal agencies to attract private investors to economically distressed areas. His experience includes directing investments in Opportunity Zones, a initiative under the Tax Cuts and Jobs Act aimed at boosting development in these communities[1][3].

    One of the immediate actions taken by Secretary Turner was to halt the enforcement of HUD's gender identity rule, a decision announced just two days after his confirmation[4].

    The National Alliance to End Homelessness has emphasized the critical role Secretary Turner will play in addressing the housing crisis and homelessness. The Alliance highlighted the need for a collaborative and non-partisan approach, stressing that solutions must be grounded in evidence and informed by community insights and the experiences of those who have been homeless. They also urged Turner to leverage the expertise of HUD's career staff to ensure effective housing programs[3].

    Secretary Turner faces numerous challenges, including persistently high mortgage rates, a shortage of housing inventory, and a significant increase in homelessness. According to HUD, the number of people experiencing homelessness rose by more than 18% in 2024 compared to the previous year. The National Low Income Housing Coalition estimates a shortage of 7.3 million units of affordable rental homes, particularly in high-cost metropolitan areas[5].

    Another key area of focus for Secretary Turner will be fair housing and lending enforcement. He must navigate the complexities of the Fair Housing Act, ensuring that HUD's policies align with the Supreme Court's *Inclusive Communities* decision. This includes resolving the issue of the "disparate impact" rule, which was withdrawn by the Biden Administration and replaced with an older rule from the Obama era[5].

    The Federal Housing Administration (FHA), which is part of HUD, also presents significant challenges. With a portfolio of over $1.5 trillion and more than 8 million active loans, the FHA has been working to keep distressed borrowers in their homes through various loss mitigation processes. However, the number of FHA borrowers utilizing partial claims to stay current on their mortgages has increased substantially, from 400,000 four years ago to over 1.7 million today[5].

    In addition to these housing issues, Secretary Turner will need to oversee HUD's role in long-term recovery efforts following natural disasters. HUD plays a crucial role in assisting communities with redevelopment and ensuring that assistance is delivered efficiently and effectively[5].

    Modernizing HUD's IT infrastructure is another priority for Secretary Turner. This includes continuing the FHA IT modernization efforts that were ongoing under both the Trump and Biden administrations to improve overall performance across HUD[5].

    Overall, Secretary Turner's tenure at HUD will be marked by significant challenges and opportunities to address the complex and multifaceted issues within the U.S. housing market.
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